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Thursday, 22 May 14
CNPC-GAZPROM DEAL A MEDIUM - TERM POSITIVE FOR CHINA'S GAS SECTOR
 Fitch Ratings says a 30-year deal in which Russia's OAO Gazprom (BBB/Negative) will supply gas to China National Petroleum Corporation (CNPC; A+/Stable) underscores CNPC's strategic role in the country's gas pipeline infrastructure and helps China to secure adequate gas supply over the medium term, especially for the north-eastern part of the country.
Under the deal, Gazprom will supply 38 billion cubic metres (bcm) of gas a year starting around 2018 at a price that sets a new benchmark for what China is willing to pay for natural gas over longer term contracts.
The agreement also demonstrates China's determination to switch to cleaner energy. China used around 168bcm of natural gas in 2013 and aims to use over 400bcm in 2020. The import agreement will meet close to 10% of China's consumption of natural gas in the medium term. Although China has substantial gas resources, exploiting the large unconventional reserves is technologically challenging. In 2013, the country imported nearly 30% of its gas requirement. We expect imports to increase as a share of total consumption in the medium term.
The new deal helps diversify the sources of China's natural gas imports, now mainly Turkmenistan and shipments of liquefied natural gas (LNG). It follows an agreement by CNPC in 2013 to take an equity stake in a Russian LNG project and buy gas from the project, which is controlled by Russia's OAO Novatek (BBB-/Stable).
While pricing for the Gazprom deal has yet to be announced, it appears from numbers reported in the media that the price will likely be at or above USD350 per thousand cubic metres (CNY2.2 per cubic meter), which is about 60% cheaper than China's current LNG imports and similar to the price for imports from central Asia. Although Fitch does not expect LNG imports to fall significantly because the use of natural gas in China is increasing, the agency believes the Gazprom deal will help reduce upward pressure on import prices in the medium term.
China has been and will continue to increase domestic gas selling prices that are controlled by the state, which should ensure profitability for operators like CNPC. For example, following gas price increases to-date, CNPC reported profits in its mid-stream gas operations in 4Q14 after losses during which high import costs sapped profitability.
For domestic gas producers, the Gazprom deal will provide incentive to further invest in natural gas exploration and production because the deal's expected price is higher than domestic production and as the authorities are expected to liberalise domestic natural gas pricing in the next couple of years. The indicative Gazprom deal price is at least 40% more than the current spot price for domestic gas, which ranges from CNY1 to CNY1.6 per cubic meter. Fitch believes the Gazprom deal is positive for CNPC, which holds over 60% of China's gas reserves and whose realised natural gas prices from its domestic productions in 2013 were around USD180 per thousand cubic metres.
CNPC will be responsible for building the pipelines and storage facilities in China under the deal. That the state has tasked CNPC to take on such important responsibility indicates that CNPC continues to play a strategic role in China's gas infrastructure, even though its subsidiary PetroChina said in May 2014 that it would eventually sell all of its stake in the First and the Second West-East Gas Pipeline to private investors.
To domestic city gas operators, especially in the north-eastern region, the deal soothes the concerns about gas supplies over the medium term. In Fitch's view, the agreement is positive for city gas operators such as China Resources Gas (BBB+/Stable), ENN Energy (BBB/Positive) and China Gas Holdings.
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Sunday, 16 April 23
CHINA JUGGLES FOUR MAJOR ECONOMIC CHANGES IN 2023 - WOOD MACKENZIE
Change is afoot in China. Economic growth is slowing, while rising political tensions between China and the US, coupled with global supply chain re ...
Sunday, 16 April 23
CHINA'S MARCH COAL IMPORTS JUMP TO 3-YEAR HIGH - REUTERS
China’s coal imports surged in March to their highest in any month over the past three years as utilities increased purchases on expectations ...
Sunday, 16 April 23
OPEC KEEPS WORLD OIL DEMAND GROWTH OUTLOOK UNCHANGED
The OPEC Reference Basket (ORB) declined in March by $3.43, or 4.2%, m-o-m to average $78.45/b. The ICE Brent first-month contract fell by $4.33, o ...
Sunday, 16 April 23
CHEAPER SPOT LNG PRICES TEMPT SOME ASIAN BUYERS AMID SUPPLY GAINS - REUTERS
Cheaper spot prices for liquefied natural gas (LNG) are luring price-sensitive buyers back in Asia, with China and India recording rising imports i ...
Tuesday, 11 April 23
COAL USE CLIMBS WORLDWIDE DESPITE PROMISES TO SLASH IT - AAP
The burning of coal for electricity, cement, steel and other uses went up in 2022 despite global promises to phase down the fuel that is the bigges ...
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Showing 106 to 110 news of total 6871 |
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- International Coal Ventures Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Interocean Group of Companies - India
- Orica Australia Pty. Ltd.
- Vizag Seaport Private Limited - India
- Heidelberg Cement - Germany
- Ind-Barath Power Infra Limited - India
- Bhatia International Limited - India
- Coastal Gujarat Power Limited - India
- Coalindo Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Agrawal Coal Company - India
- Medco Energi Mining Internasional
- TNB Fuel Sdn Bhd - Malaysia
- Deloitte Consulting - India
- Cigading International Bulk Terminal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Therma Luzon, Inc, Philippines
- Renaissance Capital - South Africa
- Coal and Oil Company - UAE
- Holcim Trading Pte Ltd - Singapore
- Mercator Lines Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bharathi Cement Corporation - India
- Banpu Public Company Limited - Thailand
- Toyota Tsusho Corporation, Japan
- Vijayanagar Sugar Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- South Luzon Thermal Energy Corporation
- Kideco Jaya Agung - Indonesia
- Eastern Energy - Thailand
- Kartika Selabumi Mining - Indonesia
- CIMB Investment Bank - Malaysia
- Jindal Steel & Power Ltd - India
- Manunggal Multi Energi - Indonesia
- Singapore Mercantile Exchange
- McConnell Dowell - Australia
- Asmin Koalindo Tuhup - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Maheswari Brothers Coal Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ministry of Mines - Canada
- Petrochimia International Co. Ltd.- Taiwan
- Price Waterhouse Coopers - Russia
- Barasentosa Lestari - Indonesia
- Gujarat Sidhee Cement - India
- IHS Mccloskey Coal Group - USA
- Karaikal Port Pvt Ltd - India
- Grasim Industreis Ltd - India
- Aboitiz Power Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Samtan Co., Ltd - South Korea
- London Commodity Brokers - England
- Alfred C Toepfer International GmbH - Germany
- Standard Chartered Bank - UAE
- Australian Commodity Traders Exchange
- Indonesian Coal Mining Association
- Krishnapatnam Port Company Ltd. - India
- Romanian Commodities Exchange
- Electricity Generating Authority of Thailand
- Star Paper Mills Limited - India
- Formosa Plastics Group - Taiwan
- Mintek Dendrill Indonesia
- Indika Energy - Indonesia
- Central Java Power - Indonesia
- Tamil Nadu electricity Board
- Indogreen Group - Indonesia
- PTC India Limited - India
- Salva Resources Pvt Ltd - India
- Posco Energy - South Korea
- CNBM International Corporation - China
- Petron Corporation, Philippines
- Malabar Cements Ltd - India
- Commonwealth Bank - Australia
- Latin American Coal - Colombia
- Kumho Petrochemical, South Korea
- New Zealand Coal & Carbon
- ASAPP Information Group - India
- Siam City Cement PLC, Thailand
- Gujarat Mineral Development Corp Ltd - India
- Intertek Mineral Services - Indonesia
- India Bulls Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- Chettinad Cement Corporation Ltd - India
- Chamber of Mines of South Africa
- Mercuria Energy - Indonesia
- Riau Bara Harum - Indonesia
- SMC Global Power, Philippines
- Neyveli Lignite Corporation Ltd, - India
- GVK Power & Infra Limited - India
- Xindia Steels Limited - India
- Ambuja Cements Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Carbofer General Trading SA - India
- Pendopo Energi Batubara - Indonesia
- Rashtriya Ispat Nigam Limited - India
- OPG Power Generation Pvt Ltd - India
- VISA Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- Parliament of New Zealand
- Bulk Trading Sa - Switzerland
- Sarangani Energy Corporation, Philippines
- Power Finance Corporation Ltd., India
- Indian Energy Exchange, India
- Parry Sugars Refinery, India
- The University of Queensland
- Global Business Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Bangladesh Power Developement Board
- San Jose City I Power Corp, Philippines
- Antam Resourcindo - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Sindya Power Generating Company Private Ltd
- Australian Coal Association
- Mjunction Services Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ministry of Finance - Indonesia
- Planning Commission, India
- Global Coal Blending Company Limited - Australia
- Baramulti Group, Indonesia
- Ministry of Transport, Egypt
- Pipit Mutiara Jaya. PT, Indonesia
- Attock Cement Pakistan Limited
- Sakthi Sugars Limited - India
- Makarim & Taira - Indonesia
- IEA Clean Coal Centre - UK
- MS Steel International - UAE
- Kepco SPC Power Corporation, Philippines
- PowerSource Philippines DevCo
- Africa Commodities Group - South Africa
- ICICI Bank Limited - India
- Port Waratah Coal Services - Australia
- Altura Mining Limited, Indonesia
- PNOC Exploration Corporation - Philippines
- Goldman Sachs - Singapore
- Globalindo Alam Lestari - Indonesia
- Dalmia Cement Bharat India
- GMR Energy Limited - India
- Eastern Coal Council - USA
- Jaiprakash Power Ventures ltd
- Aditya Birla Group - India
- Lanco Infratech Ltd - India
- Bukit Baiduri Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Meralco Power Generation, Philippines
- Straits Asia Resources Limited - Singapore
- Metalloyd Limited - United Kingdom
- Simpson Spence & Young - Indonesia
- White Energy Company Limited
- Sojitz Corporation - Japan
- Trasteel International SA, Italy
- Miang Besar Coal Terminal - Indonesia
- Directorate Of Revenue Intelligence - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Marubeni Corporation - India
- Thiess Contractors Indonesia
- SMG Consultants - Indonesia
- Indo Tambangraya Megah - Indonesia
- Uttam Galva Steels Limited - India
- Tata Chemicals Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Larsen & Toubro Limited - India
- Oldendorff Carriers - Singapore
- Videocon Industries ltd - India
- Minerals Council of Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sree Jayajothi Cements Limited - India
- Bhoruka Overseas - Indonesia
- Merrill Lynch Commodities Europe
- Bahari Cakrawala Sebuku - Indonesia
- GAC Shipping (India) Pvt Ltd
- SN Aboitiz Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Meenaskhi Energy Private Limited - India
- The Treasury - Australian Government
- Semirara Mining Corp, Philippines
- Wood Mackenzie - Singapore
- Vedanta Resources Plc - India
- Iligan Light & Power Inc, Philippines
- Edison Trading Spa - Italy
- PetroVietnam Power Coal Import and Supply Company
- Anglo American - United Kingdom
- Ceylon Electricity Board - Sri Lanka
- Central Electricity Authority - India
- TeaM Sual Corporation - Philippines
- Energy Development Corp, Philippines
- Bayan Resources Tbk. - Indonesia
- Kobexindo Tractors - Indoneisa
- The State Trading Corporation of India Ltd
- Wilmar Investment Holdings
- Kalimantan Lumbung Energi - Indonesia
- Rio Tinto Coal - Australia
- Thai Mozambique Logistica
- Kaltim Prima Coal - Indonesia
- Independent Power Producers Association of India
- Energy Link Ltd, New Zealand
- LBH Netherlands Bv - Netherlands
- Bhushan Steel Limited - India
- Orica Mining Services - Indonesia
- Binh Thuan Hamico - Vietnam
- Bukit Makmur.PT - Indonesia
- Savvy Resources Ltd - HongKong
- Madhucon Powers Ltd - India
- Sical Logistics Limited - India
- Georgia Ports Authority, United States
- AsiaOL BioFuels Corp., Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Borneo Indobara - Indonesia
- Electricity Authority, New Zealand
- Cement Manufacturers Association - India
- Economic Council, Georgia
- Indian Oil Corporation Limited
- GN Power Mariveles Coal Plant, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Siam City Cement - Thailand
- Sinarmas Energy and Mining - Indonesia
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